immo!nvest – Die Plattform für Standorte und Immobilien

Tag: Cushman & Wakefield

  • Global Survey Results on Office Use: “What Tenants Want Worldwide”

    Global Survey Results on Office Use: “What Tenants Want Worldwide”

    “The results of our survey in collaboration with CoreNet Global provide a detailed insight into the driving factors in location and real estate decisions of tenants worldwide and show a shift in thinking and approach to post-pandemic decision-making,” says Dimitrios Vlachopoulos, Head of Portfolio & Location Strategy EMEA, C&W. “It also reveals how tenants are responding to the increasing importance of corporate ESG objectives in the context of climate change.”

    Different priorities in the Americas and EMEA region
    Cost, human resources and operational excellence are the three key strategic factors influencing real estate decisions. While human resources is high on the priority list in the Americas, it ranks second in the EMEA region.

    “Tenants identify cost, human resources and operational excellence as the most important drivers of their real estate strategy and decisions. The ranking of these factors has changed somewhat in 2023. Human resources remains very important and continues to rank first in the Americas, but the importance of cost has increased. This is not surprising given the increased uncertainty since mid-2022, when inflation peaked and interest rates began to rise,” says Dimitrios Vlachopoulos.

    Importance of ESG varies
    ESG is gaining importance and most real estate teams have defined ESG targets, but their underlying factors vary by global region.

    “Since the last survey, ESG has moved up from 8th to 5th place globally as a key driver for corporate real estate. Two-thirds of CRE executives said their company has defined ESG goals, is already implementing them or plans to do so. The reasons for aligning real estate portfolios with ESG targets vary by global region. In North and South America, the focus is mainly on corporate reputation, while in the EMEA region, the focus is on environmentally responsible behaviour,” explains Dimitrios Vlachopoulos.

    Shared space in offices increasingly important
    The share of shared space within offices has almost doubled compared to the pre-pandemic period. Their share is now between 40 and 50 per cent compared to 20 to 30 per cent before the appearance of the Corona virus`. The majority of tenants (89 per cent) see the office as a place for creativity, innovation, exchange and possible meetings.

    “The purpose of the office is changing, but tenants have not yet fully adapted to the new way of working,” comments David Smith, Head of Americas Insights, Global Research, C&W. “The office is not used to control employees, and many employees do not need the office to be productive. Rather, it is a meeting place with clients, a place for creativity, innovation and synergy, and for learning and development. Currently, about half of tenants believe their offices serve these purposes.”

    You can find the complete study for download here: https://www.cushmanwakefield.com/de-de/germany/insights/what-occupiers-want

  • Investment market for commercial real estate collapses by 72 per cent

    Investment market for commercial real estate collapses by 72 per cent

    At 31 percent or €1.6 billion, the highest share of the transaction volume was accounted for by retail properties. C&W puts the decline compared to the first quarter of 2022 at 30 per cent. The relatively positive result for the retail sector is due not least to the sale of 49.9 percent of Berlin’s KaDeWe department store to the Central Group from Thailand as well as the increase in Deutsche Euroshop’s share in five German shopping centres.

    The transaction volume of office properties plummeted by almost 90 percent to 1.05 billion euros compared to the same period of the previous year. Only 2009 and 2011 had started the year even weaker in the previous 15 years. The majority of office properties sold in the first quarter were in the price range below 50 million euros. Value-add and core-plus properties dominated. Core properties and properties above 100 million euros remained the exception. For core properties in particular, the necessary downward price adjustment triggered by the turnaround in interest rates has not yet been completed, which is causing a widespread standstill in transactions in this sector. Buyers are focusing their attention primarily on value-add and core-plus properties in very good and central locations, not least with regard to compliance with ESG criteria.

    Logistics and hotel also down significantly
    Sales of logistics and industrial properties achieved a transaction volume of 795 million euros, 79 percent below the previous year’s figure. Two transactions of 100 million euros each supported the result, including the sale of the industrial and commercial park “Areal Böhler” in Meerbusch to Jamestown.

    Hotel sales recorded a 49 per cent decline in turnover compared to the opening quarter of 2022 to 180 million euros (share of 4 per cent). In the “Other” sector, which at 1.5 billion euros (minus 34 percent) is almost on a par with the transaction turnover of the retail properties, the sales of development properties dominated with 805 million euros.

    Few portfolio deals and restrained foreign capital
    The turnover volume attributable to portfolio deals posted both the lowest quarterly value and the lowest share (12 per cent) of the total transaction volume since the last quarter of 2011 with a minus of more than 90 per cent and a value of 630 million euros. The majority of portfolio sales were below 50 million euros. The largest and only portfolio in the three-digit million euro range was Deutsche Euroshop’s share increase in five shopping centres in Germany. Foreign capital was involved in the 1st quarter of 2023 with 34 percent, but is clearly below the more than 50 percent share of the past five years.

    Yields continue to rise
    The rise in yields triggered by the turnaround in interest rates in Q2 2022 continued unabated in Q1 2023. In the first three months, the averages of the respective prime values in the top 7 markets rose on average by 32 basis points to now 3.83 per cent for office properties, by 30 basis points to now 3.90 per cent for city centre commercial properties and by 15 basis points to 4.15 per cent for logistics properties.

    Munich is the most expensive office market with a top yield of 3.50 per cent, followed by Berlin, Frankfurt and Hamburg (each 3.80 per cent), Düsseldorf and Cologne (each 3.90 per cent). Stuttgart, at 4.10 per cent, has already exceeded the 4 per cent threshold. For commercial properties, Munich and Düsseldorf are at the top with values of 3.40 per cent and 3.50 per cent. Yields for logistics properties are quoted at 4.15 per cent in all seven top regions.

  • Konnex Baden wins two more tenants

    Konnex Baden wins two more tenants

    On behalf of the co-ownership, SPGI Zurich AG has rented two additional areas in the Baden connection . The Konnex building complex in the center of Baden is currently being completely renovated. According to themedia release , a “city in a city” offer will be available there by mid-2023. A total of around 35,000 square meters of space will be rented for this purpose.

    According to the press release, the new tenants are Casino Davos AG and SkySale. Casino Davos has already moved in as an interim tenant and will move into its new 495 square meter space once the refurbishment is complete. SkySale Schweiz GmbH, better known under its apple box brand, is also a new tenant. It will move into around 814 square meters of space in early summer 2023.

    The interest in the innovative multi-tenant concept of the Konnex is great and negotiations are currently taking place for many other areas. The city-in-city concept envisages a range of services and amenities, including restaurants, convenience stores, fitness, childcare and co-working.

    SPGI Zurich AG, based in Zollikon, is a subsidiary of the Intercity Group , an independent real estate service provider with group companies in Zurich, Lucerne, Bern, Basel, St.Gallen, Olten SO and Zug. Since 1993, SPGI Zurich AG has been an alliance partner of Cushman & Wakefield , a leading global provider of real estate services with headquarters in Chicago and 53,000 employees in 60 countries worldwide.